\u201cLoad shedding has been supplanted by the crisis of water security, which poses a similar if not greater threat to the quality of life and economic prospects of all South Africans<\/strong>,\u201d President Cyril Ramaphosa said at the start of 2025.<\/p>\n\n\n\n Back in March 2024, Parliament passed the National Water Resources Infrastructure SOC (state-owned company) Bill, and was then assented in August.<\/p>\n\n\n\n Broadly, the bill creates the South African National Water Resources Infrastructure Agency (NWRIA) as a significant public entity and state-owned company.<\/p>\n\n\n\n This agency is expected to begin operations in the first half of 2025.<\/p>\n\n\n\n Both the President and the Minister of Water and Sanitation have said that the current system, characterised by fragmented responsibilities between different entities, has proven ineffective in attracting the necessary investment to address the crisis. <\/p>\n\n\n\n Ramaphosa said that the new legislation is part of reforms in the water sector aimed at attracting private investment, enforcing accountability, and remedying a crisis that has caused outages and poor water quality nationwide. <\/p>\n\n\n\n According to the Act, the NWRIA’s main mandates is to streamline water resource management by consolidating responsibilities under one body, enabling more efficient planning, implementation, and funding of crucial water infrastructure projects.<\/p>\n\n\n\n Key goals of the NWRIA include:<\/strong><\/p>\n\n\n\n One of the NWRIA’s primary functions will be to implement water resource management infrastructure projects identified by the Department of Water and Sanitation (DWS). <\/p>\n\n\n\n The agency will also be responsible for collecting water use charges, providing a steady income stream to fund its operations and infrastructure development.<\/p>\n\n\n\n To further bolster its financial standing, the NWRIA will acquire the commercial enterprise of the Trans-Caledon Tunnel Authority (TCTA), including all its assets, rights, and obligations. <\/p>\n\n\n\n This will provide the NWRIA with a substantial asset base to leverage for funding. <\/p>\n\n\n\n Legal experts at Webber Wentzel, Calvin Nchabeleng and Makgati Makgatho said<\/a> that \u201cthe Bill creates an opportunity for the national government to address issues relating to water security outside of South Africa\u2019s constrained fiscal environment.\u201d <\/p>\n\n\n\n The TCTA, currently a state-owned entity, finances and implements bulk raw water infrastructure projects but lacks a substantial asset base to leverage the funding required for these projects. <\/p>\n\n\n\n Nchabeleng and Makgatho said that transferring its assets to the NWRIA is expected to create a more financially stable entity capable of attracting both commercial and development finance.<\/p>\n\n\n\n The establishment of the NWRIA is being lauded by some experts as a positive step towards tackling the water crisis. <\/p>\n\n\n\n Nchabeleng and Makgatho highlight that by operating outside the limitations of the national budget, the NWRIA will have increased flexibility to pursue innovative funding solutions and attract much-needed investment to upgrade and expand South Africa’s water infrastructure. <\/p>\n\n\n\n Visiting Professor at the Wits School of Governance, Mike Muller, previously wrote<\/a> that this new arrangement could ensure that the funds needed are properly applied.<\/p>\n\n\n\n \u201cThis will avert the kind of problems that resulted when billions of rands meant for operation, maintenance and loan repayments were irregularly diverted<\/a> by a previous Minister of Water and Sanitation for a spurious \u2018War on Leaks\u2019 project that never fixed a single leak,\u201d said Muller.<\/p>\n\n\n\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/03\/waters.jpg\")
<\/a><\/figure>\n\n\n\nWhat will the NWRIA do?<\/h2>\n\n\n\n
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<\/a>Is it all smooth sailing?<\/h2>\n\n\n\n